Sens. Blake, Hughes introduce legislation to provide financial incentives to small businesses

State Sens. John Blake (D) and Vincent J. Hughes (D) unveiled on Monday a package of two bills that would create financial incentives to help small businesses succeed.

One bill would create tax-deferred savings accounts for small businesses to shift their tax burden. The legislation would allow profits to be deposited into tax-deferred accounts. If the money deposited in the account is then used for job creation, the dollars could be used tax-free.

“Far too often, we focus on adopting or adjusting state law to help large industries deal with market changes,” Blake said. “What many fail to realize is the importance of small business to our economy.”

The second bill would exempt certain business enterprises from start-up fees. These businesses include women-owned, service-disabled veteran-owned, minority-owned and disadvantaged small businesses and microenterprises. For other businesses that do not qualify for the full exemption, a 50 percent reduction in fees would be available.

“One of the biggest stumbling blocks to small business success is the added costs of running the operation,” Hughes said. “This legislation is intended to lower business costs, leading to greater success, more jobs, and a healthier economy. We need to be doing whatever we can to open up business opportunities for a more diverse ownership base as a signal Pennsylvania supports all people who are pursuing their dreams.”

The announcement of the bills coincides with With National Small Business Week, which runs from May 5-11.

“Many potential small business owners think there are too many obstacles to success, so they are reluctant to engage,” Hughes said. “Our bills provide a pathway for small businesses to navigate financial issues.”

Hughes and Blake recently offered the bills for co-sponsorship. The measures were introduced last year as Senate Bills 1195-1196.